What type of market is the NASDAQ classified as?

The NASDAQ is classified primarily as an over-the-counter (OTC) market because it operates as a dealer network rather than as a centralized physical exchange. In an OTC market, securities are traded through a network of dealers who buy and sell directly between themselves, often using electronic means.

NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations, facilitates this electronic trading platform where a wide range of securities, including stocks of publicly traded companies, are bought and sold without a centralized physical location. This distinguishes it from traditional exchange markets where trade happens on-site, such as the New York Stock Exchange, which has a physical trading floor.

In this context, the classification emphasizes how trades are executed in the NASDAQ environment, focusing on the use of technology and the dealer-based system which allows greater accessibility and efficiency in trading, highlighting the broader structure of financial markets.